Post Office Recurring Deposit: How to Make Rs 36 Lakhs in 5 Years
Post Office: It's not about how much you earn, but how much you save that determines your financial growth. There are many ways to invest. One of the best options is the Post Office Recurring Deposit scheme.
Recurring Deposit Scheme
Post Office schemes symbolize security and trust. The Recurring Deposit (RD) is a great option for those with regular income who want to save for the future. Let's explore its benefits.
Monthly Deposit
You can start a Post Office RD with just Rs 100/month. There's no max limit. If you deposit Rs 50,000 monthly, your 5-year investment will be Rs 30 lakhs.
Attractive Interest Rate
The RD currently offers 6.7% interest, compounded quarterly. Over five years, your total will be about Rs 35.68 lakhs, meaning an extra profit of Rs 5.68 lakhs.
Minor Account Facility
Kids over 10 can open an account with parental help. At 18, they can continue it with new KYC. It's a great way to save for their education and marriage.
Deposit Payment Rules
If opened before the 15th, pay by the 15th monthly. If after, pay by the month's last working day. A small penalty is charged for missed payments.
Loan Facility and Premature Withdrawal
After one year of regular deposits, you can get a loan of up to 50% of your balance. The loan has a 2% extra charge. Premature closure is possible after 3 years.
Additional Benefits
Nominee: Add a nominee at account opening.
Online Payments: Pay monthly via the IPPB mobile app.
Tax Benefit: Get tax exemption under Section 80C.